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View Diary: Money-saving Suggestions for Congress to Consider (96 comments)

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  •  There's no deficit problem, there's a jobs problem (7+ / 0-)

    The deficit in 2008 was   3.2%
    The deficit in 2009 was 10.9%

    As Robert Pollen writes :

    Fact #3: Current large government deficits are due to the recession, not out-of-control spending.

    This is so obvious it should be barely worth mentioning. But simple facts are ignored repeatedly in the fiscal deficit debates. No doubt during the Lew hearings, there will be more discussion about the current crisis being due to the 47 percent freeloading population who, as Mitt Romney put it after his defeat, “want stuff” from the government. As we see in Figure 3, the government’s fiscal deficit spiked at 10.1 percent of GDP in 2009, immediately after the onset of the recession.

    Don't get me wrong, love your ideas, but don't believe the deficit hype, don't buy that frame.
    •  Typo - make that "10.1% " n/t (1+ / 0-)
      Recommended by:
      Lujane
    •  deficit dropped from 10.1% to 8.5% in 2012 (3+ / 0-)
      Recommended by:
      Lujane, Calamity Jean, NoMoreLies

      because of a slight improvement in the economy.

      Austerty cuts will push us back into recession.

      Cutting govt spending,  cutting SS/MC, it's all austerity.

    •  I agree - we actually need more spending (5+ / 0-)

      in the short term to stimulate the economy and should deal with the deficit longer term.  But the reality is that politicians are going to address the deficit whether we like it or not, so I'm trying to get some suggestions out there that are not as harmful as the ones being proposed.

      I wish more people like you were in Congress!

      •  Yes, but it helps to also be able to undercut (2+ / 0-)
        Recommended by:
        Lujane, JerryNA

        deficit hysteria.

        And go directly to the major sources of the inequality of expectations of We The People vs. Banks.

        The banks get free reserves from the Fed Reserve all the time, in it's role as lender of last resort.  If the fed didn't do this, then our financial markets couldn't work in the way they do.

        When it comes to We The People, we're all of a sudden out of the numerical system out of which free liquidity points are given to the banks as a matter of policy.

        It seems only the Public Deficit matters, even though We The People create free liquidity points out of thin air, and so can never go broke.

        Private debt?  That's no problem.  We can always afford more.

      •  Lujane, thanks for reccing my previous comment, (0+ / 0-)

        but all suggestions for saving Public Money should start with why, when we have a fiat currency, it's good for the Public Sector to save for Public Spending, but not for Private Sector Bank spending.

        Because neo-liberalism relies on convincing the little guy we're going broke, while spending it's unlimited liquidity points for the big guy.

        It's difficult to save up infinity, and doesn't actually happen.

    •  This is why it is difficult for me to support (0+ / 0-)

      some of the progressive agenda.  Yeah, deficits run over a 30 year period that has lead us to $16 trillion in debt and trillion dollar deficits over the last several years isn't a problem.  Totally sustainable.

      IMO, it's the left wing's version of the right wing's insistence that AGW and peak oil is a hoax.  Not very reality based in my opinion.

      We cannot solve our problems with the same thinking we used when we created them. Albert Einstein

      by theotherside on Fri Jan 18, 2013 at 04:09:08 PM PST

      [ Parent ]

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